Asume a project has the following returns for year 1to 5: 15%, 4%, -13%, 34%, 17%. What is the approximate expected return on this investment?

Question

Asume a project has the following returns for year 1to 5: 15%, 4%, -13%, 34%, 17%.  What is the approximate expected return on this investment?

Ms. Sue · Answer

Unless something changes in the future, I'd expect the future returns to be somewhere around the average of the returns for the first five years.